Nonqualified benefits questionnaire

Transcription

1 FOR LIFE Nonqualified benefits questionnaire The Lincoln National Life Insurance Company, Fort Wayne, IN Lincoln Life & Annuity Company of New York, Syracuse, NY

2 For Prepared by Date This questionnaire has been designed to assist you in analyzing the possible benefits of creating or making changes to your nonqualified benefits program. Your Lincoln representative can assist you and explain the many features of nonqualified benefits plans. Before designing a plan, it is important to establish what the employer/business owner wishes to achieve. Determining which benefits are appropriate depends on your particular circumstances. Your affiliate should be included in the design process to ensure the proper plan design is used and the total economic effects, including tax consequences, are fully understood.

3 General business information Business name Phone ( ) Address Contact person Type of business Business products or services Organization Sole proprietorship General partnership Limited liability partnership Limited liability company for tax purposes, it is treated as a: Subchapter C corporation, subject to corporate income tax at a marginal tax rate of % Subchapter S corporation, treated as a pass-through tax entity This business entity is a professional service association or corporation. This business entity is required to retain cash or equivalent assets on its balance sheet for bonding purposes. Accounting year-end Calendar Fiscal year ending / / Accountant Name Address Phone ( ) Attorney Name Address Phone ( ) All information provided here will be held in strict confidence and revealed only as necessary to complete any insurance transaction.

4 Benefits information Group insurance (life, health, dental, disability) Qualified pension/profit sharing/ira/sep Salary continuation or deferred compensation Split dollar plan Executive bonus Disability income plan Other Please include an Executive Census (if available). Yes No Wish to add or modify Insurer/details Business owner Please rank the order of importance of these goals for your nonqualified benefits program, with #1 as the highest priority. Do not use the same number for any two objectives. Provide executives with incentives to stay with the business (golden handcuffs) Allow executives to defer compensation Create an asset owned and controlled by the business Recover the cost of providing the benefit Provide a supplemental income stream subject to income tax when received Provide a supplemental income stream not subject to income tax when received Provide life insurance coverage until retirement amount of life insurance desired: $ Provide life insurance coverage until death amount of life insurance desired: $ Receive a current income tax deduction All information provided here will be held in strict confidence and revealed only as necessary to complete any insurance transaction.

5 Benefits participation By class or management title By salary level As designated by the board of directors Restriction on those within years of retirement Directors Combination of above Note: In certain plans, it is important to limit to a select group of management or highly compensated employees. This design is used to avoid unwanted income tax and ERISA consequences. It is important that clients seek competent legal and tax counsel to determine which executives should be included in this plan. Contribution/income benefits Defined contribution plan (benefits based on amount contributed) Formula for annual contribution amount: $ amount increasing percentage for years: % of compensation increasing percentage for years: Other Defined benefit plan (contributions calculated to achieve benefit desired) Formula for annual benefit amount: A flat % of compensation % of annual average salary Other Exit strategy At their discretion, the employer may transfer (via salary bonuses) its interest in the policy. When and at what rate this transfer, if any should occur: Don t transfer (i.e. full cost recovery) Partial transfer (bonusing out a portion of the employer s equity to the employee) beginning in year, leaving $ recovery to the Employer Transfer all employer s equity to the employee beginning in year All information provided here will be held in strict confidence and revealed only as necessary to complete any insurance transaction.

6 Benefit distributions At a specified time or schedule Normal retirement age of The earlier of age or age with years of service Other specified time or schedule Payable as: installments over years paid monthly/quarterly/annually/other a lump sum Preretirement death benefit amount: Employee s death benefit amount equal to proposed retirement income Employer s key man coverage Yes amount $ No For employee s named beneficiary All information provided here will be held in strict confidence and revealed only as necessary to complete any insurance transaction.

7 Notes:

8 HELPING PEOPLE FACE THE FUTURE WITH CONFIDENCE At Lincoln Financial Group, we ve spent more than 100 years living up to the character of our namesake: integrity, honesty, and the belief in a better tomorrow. We provide advice and solutions to help people save for tomorrow, secure and maximize their income, protect themselves and their loved ones, and prepare for the unexpected. INCOME LIFE RETIREMENT GROUP BENEFITS Not a deposit Not FDIC-insured Not insured by any federal government agency Not guaranteed by any bank or savings association May go down in value 2012 Lincoln National Corporation Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates. Affiliates are separately responsible for their own financial and contractual obligations. LCN TGI 4/12 Z03 Order code: LC-QUEST-FLI001 This material was prepared to support the promotion and marketing of investment and insurance products. Lincoln Financial Group affiliates, their distributors, and their respective employees, representatives, and/ or insurance agents do not provide tax, accounting, or legal advice. Any tax statements contained herein were not intended or written to be used, and cannot be used, for the purpose of avoiding U.S. federal, state, or local tax penalties. Please consult your own independent advisor as to any tax, accounting, or legal statements made herein. Products available may include market risk including possible loss of principal. Products and features are subject to state availability.